#7 - Zoetis (NYSE:ZTS)
The last stock on our list is proof that human healthcare is not the only narrative in 2020. Zoetis (NYSE:ZTS) is a leader in the area of veterinary health for pets and livestock. One thing that makes Zoetis a compelling stock is that the company is a spinoff of Pfizer (NYSE:PFE).
Pet adoptions have surged during the Covid-19 pandemic. And according to the company’s CEO, Kristin Peck, that is translating into more money being spent on food and supplies. And as owners stay home with their pets, they have been more likely to get in front of potential health issues, and are looking for solutions.
The company’s business grew to $6.26 billion in 2019. When Zoetis reports earnings in February, investors will be able to see how 2020 nets out. Through the first three quarters, the company had booked $4.87 billion so there’s a chance they could have a YOY increase.
ZTS stock is up 12% for the trailing twelve-month period although it is down approximately 4.5% in 2021.
About Zoetis
Zoetis Inc engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses.
More- Current Price
- $175.65
- Consensus Rating
- Buy
- Ratings Breakdown
- 11 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $215.00 (22.4% Upside)
Vaccine stocks, and the companies that will be involved with the distribution of the vaccine, received a significant amount of investor attention in 2020. And there was good reason. Many of these companies are moonshots that fit the risk-reward dynamic that is prevalent in the market.
But believe it or not, there will be an end to the Covid-19 pandemic. Nearly one year since the first known cases of the virus were detected in the United States, there are multiple vaccines available. And while the rollout of the vaccines will never be as fast as many want, the overall trends are moving in a positive direction.
As we pointed out in the introduction, the market is always looking for what’s next. And that means that, perhaps, there will be a return to looking at stocks for their fundamentals. These are two reasons that the vaccine trade will give way to companies that are leading the way forward.
These are the healthcare stocks you should be adding to your portfolio in 2021. They combine innovation with treatments that address the diseases that we don’t yet have a vaccine to treat.
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